Labor Law

What are an employee's rights in Israel when the employer relocates the workplace to another city?

A significant relocation is a unilateral change to working conditions, not simply a management decision the employee must absorb. Where the new location materially worsens the employee's position, resigning because of it is treated as dismissal under Section 11(a) of the Severance Pay Law 5723-1963, and full severance becomes payable. The employer must also fund the additional commute under the general extension order on travel expenses. Labor Courts look at added distance, added travel time, public transport availability and the employee's personal circumstances rather than at any fixed kilometer threshold.

Israeli employment law has no statute that names workplace relocation, so the analysis runs through general contract principles and Section 11(a). The place of work is usually a core term of the contract, and the Notice to Employee and Candidate Law 5762-2002 requires it to be stated in writing at hiring. Moving the job somewhere materially less convenient without agreement is a breach the employee may accept as a repudiation. A mobility clause in the contract weakens the claim but does not defeat it, because the Labor Courts require any such clause to be exercised reasonably and in good faith. A move of a few streets rarely qualifies; one that turns a twenty-minute commute into a two-hour one usually does.

Employees regularly forfeit strong claims by resigning immediately and quietly. The Labor Courts expect the employee to object in writing, explain concretely why the new site is unworkable, and give the employer a genuine chance to offer a solution such as transport, a hybrid arrangement or a transfer. Only then does the resignation read as constructive dismissal rather than a voluntary quit. Foreign employees should also check their visa, because a B/1 permit is tied to a specific employer, and a relocation that changes the employing entity rather than just the address can require a fresh permit.

⚖ In Practice
  • Governing law: Section 11(a), Severance Pay Law 5723-1963; Notice to Employee and Candidate Law 5762-2002 for the duty to state the workplace in writing
  • Competent authority: Regional Labor Court (Beit Din Ezori LaAvoda)
  • Travel expenses: the general extension order requires reimbursement of the actual public transport cost, capped at approximately NIS 22.60 per working day (2026)
  • What the court weighs: added distance and travel time, availability of public transport, caring responsibilities, whether the contract contains a mobility clause, and whether the employer offered alternatives
  • Preserving the claim: object in writing before resigning, allow the employer a reasonable period to respond, and state the relocation as the reason in the resignation letter
  • Limitation: severance and related wage claims must be filed in the Labor Court within seven years

From the full guide: Constructive Dismissal in Israel: When You Can Claim Severance After Resigning


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